Changes in banking regulations have contributed to bank balance sheet pressures, as evidenced by persistently negative swap spreads. This has led to increased demand for off-balance sheet Treasury exposure and continued growth of futures markets relative to cash Treasury securities. This paper applies external sources to examine the evolution of liquidity in both cash and futures markets as well as other important factors such as settlement fails in cash Treasuries.
As the world’s leading derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.
Follow us for global economic and financial news.